The tender proceedings for the infrastructure development of Palakkad Smart City (Integrated Manufacturing Cluster), the first node of the Kochi-Bengaluru Industrial Corridor, has been completed. The construction contract was awarded to a joint venture floated between Dilip Buildcon Limited and PSP Projects Limited. With this, Kerala has become the first State to complete the infrastructure development procedures for the twelve industrial corridor-smart city projects sanctioned across the country last year, said a press release from the Chief Minister’s office.
The contract is estimated to be ₹1,316.13 crore including GST. The construction work will begin soon. The total estimate for the Palakkad Smart City project is ₹3,600 crore. The State government had spent ₹1,489 crore through Kerala Infrastructure Investment Fund Board (KIIFB) two years ago for land acquisition. A total of 1,450 acres of land has already been acquired.
The land currently held by KINFRA is being transferred to the corridor development corporation in phases. In the first phase, 110 acres of land was transferred in December last year and 220 acres of land in March. The Union government had transferred ₹313.5 crore in two phases. It was decided in August 2019 to extend the Chennai-Bangalore Industrial Corridor to Kochi and build the Kochi-Bangalore Industrial Corridor. In September 2020, Kerala started the procedures for implementing the project, in which the State and Union governments have equal participation.
The development activities of Palakkad Smart City are coordinated by the Kerala Industrial Corridor Development Corporation Limited (KICDC), a special purpose vehicle formed by KINFRA and the National Industrial Corridor Development and Implementation Trust (NICDIT).
Published – September 24, 2025 08:18 pm IST
